Liquor stocks in high spirits

All liquor stocks are trading with smart gains in today’s trading session with the stocks witnessing an increase of anywhere between 3 to 17 per cent with high volumes. Increase holds significance with the upcoming party season.

The shares of spirits' companies have started seeing some bit of buying ahead of the end of the year demand for liquors owing to new year parties around the country. Consumption of alcohol increases significantly in the country in the last month of the year.

Anticipating an increase in demand and subsequently a good party season has boosted up the revenue guidance of the company.

However, demonetisation move has also negatively affected the liquor sales in the country, as cash is predominantly used in the buying of alcohol in the country. As cash becomes scarce due to demonetisation people have cut down leisure spending which directly negatively affects the consumption of alcohol.

Given the cheap valuation the stocks are trading at due to the recent correction has also given investors a chance to buy some of them.

Biggest gainers: -

Ravikumar Distilleries- 16 %

Globus Spirits- 15 %

GM Breweries- 14 %

Pioneer Distilleries- 14 %

Associated Alcohol & Breweries- 13 %